PENANG is set to take a huge leap forward in its position in the cruise industry with Penang Port Sdn Bhd (PPSB) entering a joint venture with a subsidiary of Royal Caribbean Cruises Ltd (RCL), one of the largest international cruise operators in the world, to redevelop the Swettenham Pier Cruise Terminal in Weld Quay.

The redevelopment by PPSB and RCL Development Holdings (Penang) Sdn Bhd will see the pier taking larger ships to berth at the terminal by the end of next year.

With the current expansion plan, SPCT will be able to handle two mega-sized cruise ships at the same time on the outer berths, along with one small and one medium-sized ships on the inner berths.

According to the RM155 million expansion plans, the existing 400m berth at the Swettenham Pier Cruise Terminal (SPCT) will be extended to 688m, that includes an additional 118m-long dolphin, with expectations that a future expansion may be needed to handle higher demand.

RCL International senior vice-president Gavin Smith said RCL had been taking the initiative to invest in ports to accommodate its larger ships, with investments of some US$800 million (RM3.4 billion) to date around the world.

“In Asia, we collaborate in port development to enable the handling of Oasis-class ships which are the largest in the world. We have identified Penang as a potential investment very early on in developing our Southeast Asia strategy.

“George Town is a perfect cruise destination. The water is naturally deep and sheltered, there is sun all year round, and the pier is right in town so passengers can just walk out. The city itself is a great mix of history, culture, and good food,” he said.

Swettenham Pier is unique in Southeast Asia as being the only cruise terminal with a 200m walking distance to a city, and a Unesco heritage city already popular among visitors at that.

MMC Corporate Bhd Group managing director Che Khalib Mohamad Noh said two new mega Royal Caribbean cruise liners will be able to berth at the pier at the same time, bringing almost 10,000 passengers to Penang island.

He said cruise visitor arrivals were good for the local economy, such as the retail sector, with surveys showing that each passenger would usually spend about US$50 when they are in Penang.

“In addition to the berth extension, there will also be improvements to the terminal, which will enable us to handle 12,000 passengers at any given time.

“This will be a massive increase from the pier’s current capacity of 8,000 passengers. While the developments will increase passenger comfort and convenience, we also want to minimise the impact to traffic in Georgetown,” he said.

Transport Minister Anthony Loke, who witnessed the signing between the two parties, said the JV was a milestone in the local cruise industry, which he said was the first of its kind in Malaysia.

“It is my hope that the progress in Penang will soon be mirrored in other cruise destinations in Malaysia,” said the minister who previously sat in the board of state agency Penang Global Tourism.

“Rest assured, any investor looking at bringing these destinations the next step forward as is happening in Penang today will receive the support of the Malaysian government.”

The expansion of the pier is also being made possible now with both the Penang and federal governments under Pakatan Harapan.

The state government owns the pier’s land while the port commission authorities that oversaw the pier were under the Barisan Nasional federal government in the past.

Penang Chief Minister Chow Kon Yeow said the land issue concerning the pier expansion would be settled within the month to expedite the plans.

He said the state just needs to decide whether to lease the land directly to the Penang Port Commission or through Chief Minister Incorporated.

“We will make our final decision, then work can begin. We are committed to make this redevelopment a reality,” he said. – September 6, 2018.